Short VRM Today On IPO Lockup Expiration
CFO David Jones has served in his position since November 2018. His previous experience comes from senior financial positions at Iconix Brand Group, Penske Automotive Group, and Andersen LLP. He earned a bachelor degree in business administration in accounting from Seton Hall University. The company’s SEC filing notes that Mr. Jones’s first car was a 1968 Pontiac GTO.
Company bios sourced from S-1/A and company website.
Competition: Carvana, Carmax, and Autonation
Vroom’s main competitors include Carvana (CVNA), Carmax (KMX), Autonation (AN), and Hertz Car Sales (HTZ). Other competitors include KBB, TrueCar (TRUE), CarGurus (CARG), Amazon (AMZN), eBay (EBAY), Edmunds, Autotraders, Cars.com (CARS), and Autobytel.
Early Market Performance
The underwriters priced the IPO at $22 per share. The stock opened on its first day of trading at $40.25. Although the price dipped occasionally, it reached a high of $73.97 on September 1, 2020. From there, the share price began a steady decline to reach a low of $33.50 on November 16. Currently, the stock trades around $33 to $35.
Conclusion: Short Shares Today
When the VRM IPO lockup expires today, pre-IPO shareholders and company insiders will be able to sell nearly 94 million of previously-restricted shares for the first time. We believe that they will be eager to do so - VRM has a 53% return from IPO. Any significant sales could cause a sharp, short-term downturn in share price. Risk-tolerant, aggressive investors should consider shorting shares of VRM today and covering short positions during the December 8th and 9th trading sessions.
Disclosure: We have a short position in VRM.
Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business ...
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